Monthly spot auctions planned in second quarter 2022 with clearing and delivery through ECC and EEX. The European Power Exchange (EPEX SPOT), European Energy Exchange (EEX) and European Commodity Clearing (ECC) plan to jointly launch a pan-European market for Guarantees of Origin (GOs) as part of EEX Group’s ongoing efforts to support the energy transition with market-based instruments.
The planned GOs spot auctions will be held once a month and operated by EPEX SPOT, under the exchange’s membership and market rules. Clearing and settlement will be conducted by the clearing house ECC and EEX will ensure delivery through its French GO registry. The launch of the new trading products is envisaged within the second quarter 2022, subject to successful testing and market readiness.
Guarantees of Origin are a tracking instrument that allows to confirm the origin of electricity and to determine the quantity stemming from renewable production within the total of electricity that flows through the grid. This makes them an indispensable tool to promote the production and consumption of green electricity, by ensuring its traceability and to enable investments into renewables. Thanks to this mechanism, European consumers subscribing to a green electricity offer with their energy provider can be assured that the exact amount of electricity they consume has been injected from renewable sources into the grid.
The market design of this new pan-European spot auction foresees a monthly multilateral auction for GOs from renewable production in selected countries that are part of the European Energy Certificate System (EECS), as set by the Association of Issuing Bodies (AIB). Buyers and sellers will be able to access both specific and generic GOs within one pay-as-clear auction, optimising market liquidity. Several levels of specificity within three dimensions will be made available: country, technology, and subsidy regime. Indices will be published following each auction.
Source: EPEX SPOT